There is a lot of talk at the moment about the housing market showing signs of recovery, and house prices gradually creeping back up.
Although the chances of selling your house may be on the rise, don’t forget that with higher prices comes a higher moving bill.
The price of the house isn’t the only figure you need to be concerned about when it comes to moving home. It is now said that an average move could cost you around £20,000.
Quick Move Now gives you a breakdown of some of the other costs involved in moving.
Stamp duty is the biggest cost when buying a new house. The amount of stamp duty you pay depends on the price of the house.
For property under £125,000 you are not required to pay anything, but for a house valued between £125,000 and £250,000 you will pay 1% of the price.
Between £250,000 and £500,000 you pay 3%; between £500,000 and £1m is 4%; between £1m and £2m is 5% and for a residential home over £2m you will pay 7% of the price in stamp duty.
Solicitors fees will vary, but expect to pay between £500-£1,000. You need a conveyancing solicitor to take care of all of the legal paperwork involved in buying and selling a home.
They deal with the searches (which will probably incur a further fee), as well as sorting out the land registry and stamp duty. They can also arrange for a number of surveys to be done on the property you are buying.
Make sure you get quotes from different solicitors and check exactly what the quote covers and whether it includes VAT.
Energy performance certificate (EPC)
Every house that is being sold needs an EPC before it can be marketed. Big fines exist if you don’t have this document. They cost around £50 and once done they will last 10 years.
Mortgage fees must also be taken into consideration when moving. You will be liable to pay a number of different fees when taking out a mortgage so make sure you ask for a detailed breakdown to make you fully aware of what to expect.
Things to look out for include a booking fee; early repayment charges; a product fee; telegraphic transfer fee; valuation fee; and legal fee.
Estate agency fees
Estate agency fees. If you decide to use an estate agent to sell your home they will charge you a fee. This is usually between 1% and 3% of the final sale price of your property.
It is very negotiable so make sure you barter with your estate agent to get the best deal and don’t forget to find out what they will charge you before you sign up to go on their books.
You do not have to sell your home through an estate agent, however, and other options do not necessarily incur a cost. There is an increasing trend to carry out private house sales or you could consider using a home buyer for a quick and hassle free sale. Auctions are another alternative, but will again incur a fee.
General moving costs
General moving costs also mount up and before you know it you will have spent a fortune of things you hadn’t even considered. If you are using a removal firm you can now expect to pay around £600, although this will obviously vary considerably depending on the size of your house and how far you are moving.
Other costs to consider are packaging materials; general administration and changing your address; redirecting your mail and storage. Don’t forget that you are likely to need a few takeaways while you unpack too, which will bump up the costs again.
Some mortgage lenders may allow you to roll all of these costs into the mortgage itself, but this will decrease the amount you can spend on your new home. If you are selling your house soon, the best thing to do is to get saving now!